Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 10 of 34 PageID: 82
Division, along with the attendant reputational harm that any enforcement proceeding by the
Division would cause.
The Division has placed Robinhood in a situation that is fundamentally unfair and
inconsistent with governing law. The same transactions are at issue here as were (and are) at
issue in KalshiEx . All of the contracts are traded on Kalshi’s exchange; the only difference
between the two cases is that the online portal that customers use to submit trade orders in this
case is operated by Robinhood rather than Kalshi. But that is a distinction without a legal
difference with respect to the question of preemption of New Jersey’s gambling laws.
Robinhood accordingly seeks the same relief this Court granted to Kalshi on the same legal
basis—a temporary restraining order and preliminary injunction prohibiting Defendants from
enforcing against Robinhood the same New Jersey laws that this Court has already found are
likely preempted by the CEA. Kalshi is a CFTC-designated contract market, and as this Court
has found, transactions involving the sports-related event contracts traded on its exchange are
subject to the exclusive jurisdiction of the CFTC. Id. at *6.
FACTUAL BACKGROUND
A.
Event Contract Regulation by the CEA and CFTC
An event contract is a type of derivative that allows customers to trade on their
predictions about the occurrence of future events. See KalshiEx LLC v. Commodity Futures
Trading Comm’n , No. CV 23-3257, 2024 WL 4164694, at *1-2 (D.D.C. Sept. 12, 2024). Event
contracts are typically structured as binary options posing a particular yes-or-no question. A
buyer takes the “yes” side and a seller takes the “no” side, and upon the expiration of the
contract—typically, when the outcome of the future event in question becomes known—the
value of the contract goes to the party who was right. Until that time, buyers and sellers can
trade the contract, and the price of the contract fluctuates based on the market’s assessment of
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